Slide notes:Another method of classifying health care spending examines the contributors to the funds used to pay for services. This chart, prepared by the California HealthCare Foundation using CMS Office of the Actuary data, illustrates the percentage of health care spending from different contributors. As seen on the chart, Federal and state and local contributions represent twenty-six and seventeen percent respectively, or forty-three percent of the all spending, while private sector contributions represent the remaining fifty-seven percent. Federal, state and local government contributions to funding include general tax revenues used to fund health care systems, such as the Federal government s Indian Health Service or a state or county health department. It also includes any payroll tax and the cost of purchasing private health insurance for government employees. Households in this slide represent individual and family contributions and include the employee portion of health insurance premiums, payroll taxes, and out-of-pocket costs other than premiums, which include deductibles, co-payments/co-insurance, and non-covered services. Private business contributions include the employer portion of premiums for workers health insurance and payroll taxes. The remaining 8% of health care financing funds come from the philanthropic activity of private organizations. 17